Nigeria’s naira is set to become steady in the coming week as regulator step in to meet forex shortages, while a weaker dollar is seen boosting other African currencies.

The Naira is expected to trade within a recent range after the Central Bank of Nigeria (CBN) released around $660 million to quench greenback shortages in Africa’s biggest economy.

The naira was quoted at 498 to the dollar on the parallel market, the same as last week, while banks quoted the currency at 314.50/dollar on the official interbank window.

The unit is seen closing around 305 to the dollar, the same level it has traded at since August.

“The pressure on the market has reduced slightly because of the recent dollar sales by the central bank to clear part of the backlog of demand and the regular sales to bureaux de change by Travelex,” one trader said.

On Wednesday, Nigeria sold dollars in a special auction aimed at clearing the backlog of dollar obligations of manufacturers, airlines, the agriculture and petroleum sectors. (REUTERS)